The Reserve Bank of India (RBI) and the Central Bank of the UAE have taken another step towards expanding the international usage of the Unified Payments Interface (UPI). In a recent agreement, UPI will be linked with the UAE’s Instant Payment Platform (IPP), facilitating fast and cost-effective cross-border fund transfers between the two countries.
Benefits for Indian Expatriate Community in UAE
Indian expatriates residing in the UAE, estimated to be around 3.5 million. This community is expected to greatly benefit from the linkage of UPI and IPP. It will provide them with a convenient means to transfer money back home to their families and friends.
UPI-IPP Linkage Part of MoU between RBI and UAE’s Central Bank
The UPI-IPP linkage agreement is a part of a broader memorandum of understanding (MoU) signed between the RBI and the UAE’s central bank. This MoU focuses on payments and messaging systems and includes two separate agreements. The first one establishes a framework for cross-border transactions using the Indian rupee and the UAE dirham. The second agreement aims to connect India’s RuPay card switch with UAESWITCH.
UPI’s Expanding Reach and Global Adoption
The linkage between UPI and IPP follows Prime Minister Narendra Modi’s announcement in Paris that UPI services will now be available in France as well. This move aligns with the government’s efforts to promote the widespread use of UPI, a key component of India Stack. NPCI has taken steps to facilitate UPI’s global expansion by establishing NPCI International Payments Limited.
UPI has established cross-border linkages with Singapore’s PayNow. It also has gained acceptance in several other countries, including Nepal, Canada, and Bhutan.
Impressive UPI Transaction Numbers and Market Dominance
In the month of June 2023, Unified Payments Interface recorded an astounding 933 crore transactions worth INR 14.75 lakh crore. Leading digital payment platforms PhonePe, Google Pay, and Paytm maintained their dominance in the Indian digital payments market, with CRED securing a distant fourth place.
These developments showcase the growing popularity and success of UPI. It has revolutionized the way people transact digitally in India and is gaining increasing presence on the global stage.
Also Read The Latest News:
Gaming startups petition government to reconsider 28% GST levy
These developments showcase the growing popularity and success of UPI. It has revolutionized the way people transact digitally in India and is gaining increasing presence on the global stage.
Also Read The Latest News:
Gaming startups petition government to reconsider 28% GST levy
Elon Musk launches AI startup xAI to explore reality
